The latest White House sanction has caused concern in China. While commenting that “Chinese companies are going back to the Stone Age”, it was stated that the Asian country spends more on microchips than oil.
The chip crisis has emerged in the world, which has been increasingly digitized in recent years.
Chips, which are needed in many fields from small household appliances to the automotive industry and the defense industry, are of great importance in terms of global trade.
Chips, which have a key position for industries, have turned into a competitive element between the USA and China.
Chip restriction from the USA
Finally, the US has decided to impose new restrictions on chip exports to the Asian country in order to undermine China’s military technology power.
US Department of Commerce, “We will constrain China’s ability to acquire advanced computing chips, develop and maintain supercomputers, produce advanced semiconductors.” said.
“China’s chip industry is suffering”
The Financial Times wrote that China’s chip industry is suffering “deeply” from the new US export controls.
Two years after the US targeted Huawei with harsh sanctions, the Chinese tech group’s revenue fell, it lost its leadership position in network equipment and smartphones, and the company’s employees were told that the organization’s survival was “in danger”.
Prohibition of working with manufacturers
It was pointed out that Washington continues to take steps against Beijing, and that thanks to export controls, the sale of chips to China can only be possible with an export license, but this will be very difficult to obtain.
It was also stated that the United States, American citizens or organizations are prohibited from working with Chinese chip manufacturers without a specific approval.
“Chinese companies go back to the Stone Age”
Szeho Ng, Managing Director of the financial institution China Renaissance, “To put it mildly, (Chinese companies) go back to the Stone Age.” used the phrase.
Paul Triolo, expert on China and technology, “There will be many losers as the tsunami of change unleashed by the new rules devastates the semiconductor and related industries.” he said.
“They are not willing to give up their US passports”
Chinese chip companies are even more concerned about the White House’s attempts to prevent US citizens from supporting them.
A human resources manager at a government-sponsored semiconductor factory, “This is a bigger bombshell than preventing us from purchasing equipment. We need to find a way for these people to continue working at our company. So hard. Most people are not willing to give up their US passports.” made the emphasis.
“China spends more on microchips than oil”
On the other hand, The Times newspaper, “The chip war the West must win” He wrote an article entitled.
In the news, “China spends more on microchips than oil. This means that for Taiwan the fight has historical significance.” it was said.
A major chip manufacturing base, Taiwan is the world’s largest independent semiconductor manufacturer and a key supplier to leading companies including Apple.
